Bitcoin Begins December on Firm Footing Following Worst Month Since 2011

Bitcoin’s price rebounded on Saturday, as the bulls looked set to reassert themselves following a rocky end to November. The leading digital currency fell by a whopping 37% last month, marking its worst 30-day performance since 2011.

BTC/USD Update

The bitcoin price reached a high of $4,335 on Bitfinex, having gained more than 7% during the course of the session. At the time of writing, the BTC/USD spot price was trading at $4,316, up 6.8%.

As the 4-hour chart illustrates, the leading digital currency is enjoying a solid bounce in momentum, with the relative strength index (RSI) quickly approaching 60. This pivotal mark is usually a sign that the bulls are controlling price action.

Bitcoin briefly fell below $4,000 on Friday, eroding a large chunk of the gains made during the previous 48 hours. On Tuesday and Wednesday, the coin’s market cap rose by as much as $12 billion. For now, it appears that the $4,000 support level is holding firm. This critical defense is needed to protect against a further re-test of yearly lows.

In terms of market data, bitcoin’s total turnover on Saturday reached $5.5 billion, according to CoinMarketCap. Spot trading surged, with six exchanges processing at least 2% of the daily volume. BitMEX, which has dominated the market since the selloff began last month, saw its share of the total volume fall to 22%. The popular derivatives market allows traders to short bitcoin.

Market-Wide Recovery

Bitcoin wasn’t the only cryptocurrency to trade in a positive direction Saturday. With the exception of the dollar-backed stablecoins, all coins in the top-30 reported gains.

Litecoin, which has slipped to no. 7 in the market cap rankings, was among the top performers. The LTC price rose 8.4% to $34.64. Tron was also among the top gainers; TRX rose 7.4% to $0.0152. Cardano climbed 6.7% to $0.4129.

Among the top-five, Stellar broadened its lead over bitcoin cash, gaining 5% to $0.1675. The BCH price edge up 1.1% to $175.64.

XRP rose 3.6% to $0.3740, while Ethereum added 4.5% to $118.74 (all figures according to CoinMarketCap).

The combined value of all cryptocurrencies rose by $8 billion to $138.5 billion, based on latest available data. At the height of the rally last week, the market cap peaked above $142 billion.

There was no immediate catalyst for the weekend reversal, just as there was no one overarching theme for the sharp decline on Friday. This means technical trading is largely responsible for the movement. Bitcoin’s solid trading volume also suggests that markets remain relatively engaged in spot trading, which reduces the likelihood of added volatility that usually accompanies low-volume environments.

The bitcoin market is gearing up for an exciting start to 2019. In January, Intercontinental Exchange’s Bakkt trading platform is scheduled to go live, offering investors the opportunity to trade physically-delivered bitcoin futures. It was also confirmed earlier this week that Nasdaq will open a bitcoin futures market in the first quarter of next year, offering a product that VanEck calls “futures 2.0.”

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

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Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 743 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes.
Contact: sam@hacked.com
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Bitcoin Reverses Gains as Bears Eye Breakdown of Major Support Level

Bitcoin swung lower on Sunday, giving back all of Saturday’s gain and setting the stage for a possible re-test of a long-term support level.

BTC/USD Update

Bitcoin’s price fell 4% to $3,596.96, where it was approaching an important long-term support. That level is located at $3,550. A successful penetration south by the bears could set the stage for a bigger drop toward new yearly lows. As a refresher, bitcoin bottomed near $3,100 last month before rebounding more than 30%.

The bulk of the selloff on Sunday occurred over the span of one hour beginning around 06:30 UTC. Trading volumes have remained elevated throughout the session, with roughly $5.4 billion worth of BTC trading hands on virtual currency exchanges.

The leading digital currency received a boost heading into the weekend, as buyers re-emerged following a period of hesitation. Bitcoin climbed back above $3,700 on Saturday before the latest reversal took root.

Broad Market Reversal

Even with the recent decline, bitcoin’s share of the overall cryptocurrency market was little changed at 52.5%. That’s because altcoins and tokens registered bigger percentage losses, with Ethereum, bitcoin cash and EOS each falling 4.5% or more.

Alternative cryptocurrencies tend to gravitate around bitcoin, especially during bearish trends. Justified or not, bitcoin continues to be a major influence on how other assets perform. At the time of writing, the total cryptocurrency market cap was worth $119.8 billion.

Trading across all virtual assets has remained elevated over the last 24 hours, with total volumes exceeding $16.7 billion. Cryptocurrencies have seen a substantial rise in circulation over the past three months as long-dormant accounts became active once again.

In less than one month, cryptoassets will enter its longest bear market in history, according to CNBC’s Ran NeuNer. As of Sunday, the bear market has stretched on for 394 days. The longest on record was seen back in 2014-15 when the bear trend lasted for 420 days.

2019 could be a year of accumulation for bitcoin, as long-term holders and institutional investors look to capitalize on low prices. As we recently speculated, bitcoin will likely prove to be an attractive investment in the $2,000-$4,000 range. The current hesitation reflects uncertainty about whether the market has reached a definitive bottom.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (3 votes, average: 4.67 out of 5)You need to be a registered member to rate this.Loading...

4.7 stars on average, based on 743 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes.
Contact: sam@hacked.com
Twitter: @hsbourgi

Crypto Markets Get a Boost Heading Into the Weekend as Debate Over Bitcoin ETF Intensifies

Cryptocurrency prices rose on Saturday, alleviating the risk of an imminent pullback following days of mostly lateral moves. As history has shown, longer periods of sideways trading are often followed by brisk selloffs in bitcoin and altcoins.

Flush of Green

The biggest cryptocurrencies all reported gains at the start of the weekend. Bitcoin, the largest by market cap, climbed back above $3,700 in a show of momentum for the bulls. At last check, the bitcoin price was valued at $3,744.11, having gained 2.5% from Friday.

Bitcoin’s price broke out on Monday but failed to generate sustained bids throughout the week. As a result, it spent most of that period hovering between $3,600-$3,700. Bitcoin faces a major long-term support at $3,550; a break below this key level could be a momentum killer for the bulls.

The leading digital currency continues to be a good barometer for the overall market. With a market dominance rate of 52.5%, bitcoin has a direct impact on how altcoins and tokens perform. It comes as no surprise that coins other than bitcoin rose by more than $2 billion on Saturday, according to CoinMarketCap.

The total market cap of all cryptocurrencies improved to $124.7 billion, up markedly from a 24-hour low of $120.9 billion.

Litecoin was the top gainer among major cryptos, rising 4.4% to $32.65. XRP added 1.7% to $0.3313, Ethereum climbed 2.5% to $125.01 and bitcoin cash rose 1.4$% to $130.70.

Bitcoin ETF Debate Continues

The U.S. Securities and Exchange Commission (SEC) has a big decision to make in roughly five weeks: approve or reject the VanEck SolidX Bitcoin Trust. Unlike previous crypto ETF applications, the VanEck-SolidX application proposes a physically-settled bitcoin fund that addresses many of the SEC’s ongoing concerns around investor protection and market manipulation.

Some investors are clinging to the hope that SEC approval of the VanEck-SolidX product will give the market a much needed boost by the end of the first quarter. But the impact of the approval/rejection could depend largely on how the market performs heading into the decision, now slated for Feb. 27. As Hacked reported last month: “The rejection of an ETF approval could affect the market if the price of Bitcoin has been increasing in anticipation of the announcement.” More here.

The consensus among analysts and market observers is that the SEC is unlikely to approve any bitcoin ETF this year. This view was recently echoed by bitcoin bull and CNBC contributor Brian Kelly, who says the bitcoin futures market isn’t mature enough to allow for an ETF to be approved. He didn’t comment specifically on the VanEck application, which has been designed as an alternative to futures-linked products by holding a repository of physical BTC as opposed to derivatives.

The SEC’s Office of Compliance Inspections and Examinations (OCIE) named crypto as one of six regulatory focal points for 2019. In a recently released report, OCIE said: “Given the significant growth and risks presented in this market, OCIE will continue to monitor the offer and sale, trading, and management of digital assets, and where the products are securities, examine for regulatory compliance.”

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 743 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes.
Contact: sam@hacked.com
Twitter: @hsbourgi

Crypto Update: Coins Drift Lower but Damage Remains Limited

The major cryptocurrencies continue to trade in narrow ranges following last week’s decline and this week’s failed rally attempt. While Bitcoin is stuck near the $3600 support, the other top coins have been losing ground today, with Ethereum dipping below the $120 level, Ripple violating the $0.32 price level and Litecoin testing the $30-$30.50 support zone yet again.

Trading volumes and volatility remain very low across the board, but correlations are still high between the majors, and despite the quiet environment, we haven’t seen bullish signs in the market. That said, the trading ranges that developed this week are still intact, and although the overwhelmingly bearish long-term picture still makes the continuation of the decline more likely, a failed break-down pattern could still develop in the segment, should the top coins recover above their weekly highs in the coming days.

For now, our trend model remains on sell signals on both time-frames in case of most of the majors, and traders and investors should still stay away from entering new positions here, with still no bullish leadership being present.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is still relatively stable even in the very quiet environment, and the most valuable coin is trading right at the $3600 support/resistance level. BTC formed a volatility compression pattern in recent days, and that formation points to a more significant move in the coming days, with a move out of it being inevitable as soon as this weekend.

Bulls are still looking for a move above $3850, towards the key zone between $4000 and $4050, but the bearish long-term setup continues to favor a dip below $3600, with support zones still found near $3250 and $3000, and traders and investors should still not enter positions here.

ETH/USD, 4-Hour Chart Analysis

Ethereum failed to get close to the $130 resistance level again, and as it dipped below primary support, the test of the swing low near $112 is likely in the coming days. The coin remains on sell signals on both time-frames in our trend model, and a move towards the key support zone and between $95 and $100 is likely in the coming weeks, barring a quick reversal above $130. Further resistance is ahead at $145, $160, and near $180 while the bear market low is found near $80

Ripple Under Pressure Again in Weak Environment

EOS/USD, 4-Hour Chart Analysis

Altcoins continue to trade without a clear direction despite today’s dip, but the bearish drift of the recent days means that the key support levels could be in focus during the weekend, should the volatility compression finally end. The few major coins showing signs of strength haven’t been able to maintain the bullish momentum, like EOS, which gave back yesterday’s gains today.

XRP/USDT, 4-Hour Chart Analysis

While the market of Ripple is still very quiet, the coin fell below the $32 support yet again, and it remains relatively weak compared to its closest peers. It is also on sell signals on both time-frames in our trend model, and a dip below $0.30 will likely be the next significant move. Further strong support is found near the $0.26 level, with resistance ahead near $0.3550 and $0.3750.

LTC/USD, 4-Hour Chart Analysis

Litecoin is trading just above the key $30-$30.50 support zone, and it sill failed to get anywhere near the next major zone near the $34.50 price level. Given the hostile long-term setup and the short-term sell signal our trend model, traders should stay away from the coin here, with a move toward the $26 level being likely in the coming weeks. Further strong resistance is ahead near $38 and $44 and with another support level found near $23.

Featured image from Shutterstock

Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 444 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

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